Social media stocks slump as Twitter, Snap warn of dire ad spending

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Shares of social media firms fell sharply on Friday after Twitter and Snapchat\u0027s owner said advertisers had tightened their purse strings.

Advertisers have pared back spending amid rising interest rates and surging inflation as some of them struggle with labour shortages and supply chain disruptions, Snap Inc said on Thursday.

Snap Inc’s shares were down 36.4% and were the most heavily traded across U.S. exchanges, as the company said it was looking for new sources of revenue to grow.

 

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